Added dollar purchases could affect the baht: bank strategist
The baht opened at 32.81 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 32.75.
The Thai currency is likely to move between 32.75 and 32.90 on Wednesday and between 32.60 and 33 this week, Krungthai Bank market strategist Poon Panichpibool said.
He explained that the weakening of the baht would spur some investors to purchase more dollars or other foreign currencies and this would affect the baht, causing the currency to move between 32.70 and 32.80 per US dollar. The psychologically resistant level of the baht was 33, he added.
Furthermore, the dollar tended to gain support as a safe haven asset at a time when market players were still concerned about the Covid-19 crisis around the world, Poon noted.
The worse the situation, the more the dollar would strengthen, he concluded.
